Connect with us

archive

Souring Chinese Consumers Weigh on Alibaba Shares

There’s been no shortage of commentary on the recent initial public offering (IPO) of Alibaba (BABA) shares. During the last week or so, I’ve fielded questions from a number of people, including students that attend the graduate finance classes I am teaching this semester at the New Jersey City University (NJCU) School of Business, as to my thoughts on the pricing of that offering.

There is no doubt the Alibaba IPO was a hot transaction —¬†not only was it the largest-ever IPO, but the shares quickly catapulted up to close their first day of trading at $93.89, a 38% gain from the company’s offer price of $68 per share. If you were an investor that received stock on the IPO transaction¬†and¬†cashed out during that first day of trading, you would have booked a quick and significant profit.

The vast majority of investors did not have such luck, and that raises the question as to whether or not Alibaba shares are a good buy even after their more-than-7% pullback during the last few days.

Read more about Alibaba’s initial public offering and its effects on the market at Eagle Daily Investor.

Newsletter Signup.

Sign up to the Human Events newsletter

Advertisement
Advertisement

TRENDING NOW:

Drudge Survives Without Google, So Why Can’t Legacy Media?

TECH

‘Squash Amash’ Rally Takes Aim at Michigan’s Anti-Trump GOP Rep

U.S. POLITICS

Big Tech Big Tech

‘Principled’ Rightists Have Forgotten What the Principles Are.

TECH

Lessons From The Border’s Volatile History.

U.S. POLITICS

archive

Souring Chinese Consumers Weigh on Alibaba Shares

There‚??s been no shortage of commentary on the recent initial public offering (IPO) of Alibaba (BABA) shares.

There‚??s been no shortage of commentary on the recent initial public offering (IPO) of Alibaba (BABA) shares. During¬†the last week or so, I‚??ve fielded questions from a number of people, including students that attend the graduate finance classes I am teaching this semester at the New Jersey City University (NJCU) School of Business, as to my thoughts on the pricing of that offering.

There is no doubt the Alibaba IPO was a hot transaction —¬†not only was it the largest-ever IPO, but the shares quickly catapulted up to close their first day of trading at $93.89, a 38% gain from the company’s offer price of $68 per share. If you were an investor that received stock on the IPO transaction¬†and¬†cashed out during that first day of trading, you would have booked a quick and significant profit.

The vast majority of investors did not have such luck, and that raises the question as to whether or not Alibaba shares are a good buy even after their more-than-7% pullback during the last few days.

Read more about Alibaba’s initial public offering and its effects on the market at Eagle Daily Investor.

Newsletter Signup.

Sign up to the Human Events newsletter

Written By

Chris Versace is a financial columnist and equity analyst with more than 18 years of experience in the investment industry. He has been ranked an All Star Analyst by Zacks Investment Research and his efforts in analyzing industries, companies and equity securities have been recognized by both Institutional Investor and Thomson Reuters‚?? StarMine Monitor. He‚??s frequently published in The Washington Times and is a frequent contributor to the daily radio show ‚??America‚??s Morning News‚?Ě and ‚??America‚??s Radio News‚?Ě. He has been quoted in the Wall Street Journal, Investor‚??s Business Daily, The Street, USA Today and other publications. In addition, he can be frequently seen on television‚??s ‚??Fox Business‚?Ě show.

TRENDING NOW:

Drudge Survives Without Google, So Why Can’t Legacy Media?

TECH

‘Squash Amash’ Rally Takes Aim at Michigan’s Anti-Trump GOP Rep

U.S. POLITICS

Big Tech Big Tech

‘Principled’ Rightists Have Forgotten What the Principles Are.

TECH

Lessons From The Border’s Volatile History.

U.S. POLITICS

Connect
Newsletter Signup.

Sign up to the Human Events newsletter